| According to the revised listing rules of Shanghai Stock Exchange,the nonrecurring profit in the financial statements of an enterprise can be regarded as a part of the current income of the enterprise,that is enterprises can use the non-recurring profit and loss items to change the financial data of the company to achieve the purpose of profit transmission,which is one of the reasons for the emergence of earnings management.Due to the special ST system in China,some listed companies will take unconventional measures to "take off the ST hat" in order to avoid losing the listing qualification,which is a scarce resource,when their normal operation could not achieve profits.These enterprises usually carry out negative earnings management in the second year of loss,and turn loss into profit in the third year through positive earnings management.With the continuous reform of ST system,the specific means of earnings management of St enterprises are constantly changing.However,whether it is accrual earnings management,real earnings management or classified transfer earnings management,the earnings management behavior of enterprises will inevitably lead to the distortion of the report data disclosed by them,which will affect the data acquisition and investment decision-making of investors,and it is really nothing help for them to raise their profitability.In this paper,ST companies’ loss turning and decapitation in 2018 is selected as a typical case to analyze the financial situation of St ship before decapitation and the market reaction after decapitation.Jones model is used to confirm that ST ship overstated its loss in 2017,and there is the behavior of using accrued profits to transfer profits across periods,and the behavior of operating profits is studied by combining normative analysis method and case analysis method.Finally,this paper finds that although Chinese ships get rid of delisting risk,they mainly rely on accrual earnings management,not the real improvement of profitability.It is suggested that we should improve and standardize China’s perspective system,strengthen the internal governance of the company,improve the disclosure system of listed companies,and strengthen the construction of legal system to promote the healthy development of China’s securities market. |
